Part 4/8:
The question arises: has Japan embraced stagnation as a viable economic state? The benefits of such stagnation include job security and manageable inflation rates. The nation’s cultural reluctance to change has led to stable consumer expectations, where businesses avoid inflation. As a result, wages have maintained purchasing power, allowing the population to experience a high quality of life amid stagnancy.
Conversely, Japan's traditional culture of risk aversion has stifled entrepreneurship and innovation, preventing new businesses from rising to prominence. Institutional practices, such as an overemphasis on hierarchy, contribute to a rigid job market where workers are often engaged in busywork rather than productive tasks.